The Impact Of Political Connections On The Allocation Of Development Projects In Faisalabad

Abstract

Development related funding is critical for the long-term growth of any country, but the allocation of funds between politicians and different areas can vary due to various factors and one important factor is the connections of politicians with those who approve or allocate these funds. This thesis attempts to determine whether the strength of political connections impacts the allocation of development schemes across politicians in the Faisalabad district of Punjab. Some of the questions we answer are: Do politicians favor their own constituents with higher budget or more popular development projects? Does the allocation of development funds impact the decisions of voters in elections? Also, are there any differences in the popularity of projects, budget of projects and popularity of projects approved by the local government as compared to district and provincial government? Data on developmental schemes from the Faisalabad district has been used to answer these questions. The data is from 2010-2016 with a total of 6900 development schemes and covers the 8 towns, 11 national assembly constituencies and 22 provincial constituencies of the Faisalabad district. The results show that strength of connection, electoral strength and party affiliation significantly impact the allocation of development funds in Faisalabad